Which type of carrier is characterized as being free from economic regulation?

Exempt carriers are defined as those which operate without the constraints of economic regulation. This means they are not subject to the same pricing and service regulations that apply to most other types of carriers, such as common or contract carriers. The exemption typically applies to carriers that transport certain types of goods, such as agricultural products or livestock, which may not need the same level of oversight as other freight.

This flexibility allows exempt carriers to respond more freely to market changes, which can be particularly advantageous in niche markets or for specific types of goods. By being free from the burdens of regulatory compliance, exempt carriers can often provide services more quickly and adapt to customer needs more effectively.

In contrast, common carriers are required to serve the general public under defined regulations, including the necessity to charge published rates. Private carriers own their own transportation resources and are meant to move their own goods rather than operate for the public. Contract carriers operate under a contract with specific shippers and are subject to certain regulations, but they must adhere to different compliance requirements than exempt carriers do.